The Marketing Concept

During the 1960s, the term ‘marketing concept’ emerged. It was a ‘revolution’ because what can be considered as modern businesses have changed their strategies and the total activities of their businesses. William J. Stanton, Professor of Marketing at the University of Colorado stated:

“The marketing concept is based on two fundamental beliefs. First, all company planning, policies and operations should be oriented toward the customer; second, profitable sales volume should be the goal of a firm. In its fullest sense, the marketing concept is a philosophy of business which states that the customer’s want satisfaction is the economic and social justification of a company’s existence. Consequently, all company activities in production, engineering, and finance, as well as in marketing, must be devoted first to determining what the customer’s wants are and then to satisfying those wants while still making a reasonable profit.”

A marketing executive at the General Electric Company, one of the first companies formally to recognize and implement the marketing concept, emphasized the important role of marketing in a nice way when he said: “We feel that marketing is a fundamental business philosophy.” It is obvious that this definition recognizes the importance of implementing the philosophy of marketing’s functions and methods of organizational structuring. Although it must be realized that marketing’s functions and methods are not, in themselves, the philosophy.

But the best-known writer on the subject at that time was Professor Theodore Levitt of Harvard. He had this to say: “Every major industry was once a growth industry. But some that are not riding a wave of growth enthusiasm are very much in the shadow of decline. Others which are thought of as seasoned growth industries have actually stopped growing. In every case the reason growth is threatened, slowed, or stopped is not because the market is saturated. It is because there has been a failure of management. The failure is at the top. The executives responsible for it in the last analysis are those who deal with broad aims and policies.”

The excuses used for declining growth of the railroads, for example, were not because the need for passenger and freight transportation declined. That grew. The railroads were in trouble not because the need was filled by others like cars, trucks, airplanes, even telephones, but because it was not filled by the railroads themselves. The railroads companies let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry wrong was because they were product-oriented instead of customer-oriented.

Peter Drucker, the world’s leading writer on the whole field of management, says: “It is the customer who determines what a business is. It is the customer alone whose willingness to pay for a good or service converts economic resources into wealth, things into goods. What the business thinks it produces is not of first importance-especially not to the future of the business and to its success… What the customer thinks he is buying, what he considers value, is decisive-it determines what a business is, what it produces and whether it will prosper. And what the customer buys and considers value is never a product. It is always utility, that is, what a product or service does for him…. Because its purpose is to create a customer, the business enterprise has two-and only these two-basic functions; marketing and innovation. Marketing and innovation produce results; all the rest are ‘cost’. It is vital for every company regularly to ask this question ‘what business are we in?’ and to answer it in terms of what its customers buy not in terms of what it produces.”

More recently, Professor Peter Doyle has said that “Marketing-the task of seeing to provide customers with superior value-is so central that it cannot be seen as just another function alongside production, finance or personnel. The central task of management is to find better ways of meeting the needs of customers.”

source: http://en.articlesgratuits.com/the-marketing-concept-id1429.php

5 Ways of Using Direct Marketing

Direct marketing is attractive to many marketers because in most cases its effectiveness can be measured directly. For example, if you were to send out one thousand solicitations by mail and you receive seventy responses, then you know that the mailing led to a seven percent response rate.

Any medium that you choose to use to communicate directly to your prospects is being employed in direct marketing. These 5 methods are examples of direct marketing that you can use to obtain prospects and increase sales for your business.

Direct mail

One of the most commonly used mediums in direct marketing is direct mail. Direct mail allows you to design marketing pieces in many different formats. Direct mail can include envelope mailers, catalogues, self-mailers, snap mailers, dimensional mailers, brochures, and postcards. When you write your direct mail piece make sure you know your target market, and how you are going to appeal to their wants and needs. Write your objective and refer to it often. Don’t lose sight of where you want to go with the piece that you are writing. You can purchase a mailing list of businesses and services in your target market from a list company, or you can develop your own list by gathering email addresses on your web site.

Telemarketing

Telemarketing is a direct marketing sales technique that has the advantage of speed in a marketing campaign. When you are a conducting a telephone solicitation you should first introduce yourself then offer an incentive in solving a problem that you know exists (to do this would require you to do some research on the business or what individuals would be looking for in your product). Ask question that you know will lead to a yes answer (keep prospects on phone answering yes to your questions). Describe your product or service and how it solves the client’s needs. Ask if they have any questions. You now can ask for a face to face meeting, or to get permission to send information via mail or e-mail, or make another brief follow-up call. If unavailable, ask what would be a good time to call back.

E-mail

The most common medium today for direct marketers is e-mail because of its low cost, and because customer responses can be generated rapidly. You must understand that the internet is a different medium. The copy that worked for you in postal mail will not on the internet, not as e-mail. In e-mail copywriting, the subject is the headline, you must write succinct headline-3 to 5 words. Your subject determines whether your e-mail gets read or not. Next, make it personal. People on the internet want personal notes. Next, get to the point keep it short and simple. Next, give them an incentive to act by giving them a reason to buy now. Next, include a call to action to tell people what you want them to do. Don’t leave them wondering what to do next. Next, drive people to your web site (don’t try to close the sale in the e-mail). Next, build relationship with your clients. Listen to their want and needs. Treat your clients like you would treat yourself. Next, you must follow through on your promises that you made to your client. Do what you said you were going to do.

Direct response

In direct response marketing the customer responds to the marketing message directly. An example, of this would be infomercials, where prospects view a television presentation of a product offering, and can make a purchase with a credit card over the telephone or internet. You can use communications in magazines, newspapers, radio, e-mail, and direct mail to solicit a response. For example, order forms or coupons in magazines and newspapers to purchase products, or receive discounts on products are techniques that have been used very successfully in increasing sales. These same offers are distributed by e-mail and tell and toll-free numbers, which in today’s marketing world, is more economical and faster.

Personal selling

Making personal sales calls on prospects is another technique of direct marketing. You should first conduct research on the companies, or the target prospects that you are trying to sell your product or service too. You can also buy a list from a reputable list company. If you take this route make sure that you have complete information on your target market. When making a personal sales call you must write a sales presentation before hand. This presentation should be written to fit the needs and desires of the prospect that you are presenting your product too. Your presentation should provide clear examples, or even demonstrations of how your product or service will accomplish this. Your presentation should contain more that just one way your product can be of service to your prospect. You must also be prepared to handle objections and questions that the prospects will have.

Network Marketing Products, Will They Make Or Break Your Business?

Network marketing products have been known to be some of the best products on the market. The network marketing business model allows for the company to cut out several levels from production of the products to the end consumers. With this strategy, comes the ability of the company to focus more intent on the quality of the network marketing products.

So there is no question why network marketing products are popular. However there is a big question from a business perspective. Does a product add to the ability for a person to attain more success in the mlm / network marketing / direct sales industry?

Now this is a somewhat controversial subject and you will get many different opinions about it. Some will say that the product a company has makes the difference between success and failure of all the distributors. From others you will hear that it doesn’t really make that much difference.

So who is right? Well, coming from more than 10 years of experience in the industry, most of the people saying that their products made a huge impact on their success, are usually some of the top income earners in their company. Many times they are saying this so that people in their organization continue to be on their autoship. There are some people who the products truly did change their life completely and in most cases these people typically stay consumers for life but never really build a business. Now of course there are exceptions to this, but in the grand scale of the industry this is pretty much the reality.

There are also a lot of people who even suggest how much success a person can have in business because of their network marketing products. You have probably heard someone say, “This product is so great, it basically sells itself.”

Well if that is really true, then I challenge the person who says this to take their product out of the box it came in, walk outside and put it down in the middle of your front yard. Now go back inside and check your company back office and see if you made any commissions. In fact leave it out there for a few days and then check your back office again. You will see that you did not make any money because the product did not sell itself.

In my opinion, network marketing products are some of the best products available. They have the ability to completely change an aspect of a person’s life, whether that be physical, mental or both. The more change a person goes through in their life as a result of the product, the more likely they will stay involved at some level with that company.

Now when it comes to building a business however, in my opinion, the product is not nearly as important as the person who is building the business. I say this because people do business with people they know, like and trust. A person will only join or become a customer if these three factors are met.

Think about outside of this industry for one second and look at your past experiences of dealing with different sales reps. There is usually some that you remember as being magnificent in answering all your questions and making sure it’s a great fit for you. There is also those ones that you actually left the store and bought it somewhere else because of the sales rep. The same applies with network marketing products and companies.

When it comes to network marketing products and the success in your business, in my opinion you have to be at least somewhat passionate about what you have to offer. This further enables your ability to attract people.

Now, with that said, since people do business with people they know, like and trust, I highly recommend you learn how to market yourself instead of your company or network marketing products. If you can learn how to brand yourself as a leader in the marketplace, you will attract far more people who want to be in business with you.

7 Urgent Things To Do Before Writing Your Marketing Plan

Have you ever wondered how to streamline creating a marketing plan?

Can I show you 7 simple questions to ask to help speed up creating your next marketing plan?

The first question to ask is, “Do I really need a marketing plan.”

You may not. If everything you are doing to bring in all the business you want, don’t change a thing. Even if you or your staff are bored with it. Let it keep profiting until it stops profiting.

Next ask, “What do I want a marketing plan to do for me and my business.”

Many marketing plans are written as part of a business plan. Also, marketing plans are written when looking for new or more funding. Most marketing plans are created as a road map, a guide to the next 12-18 months of marketing campaigns

Now, “What is your Unique Selling Proposition (USP)?” Answer in a compelling way, why anyone would choose your products, services or ideas over all the other choices they have, including doing nothing.

Of course, you are making and “Irresistible Offer” every time you are in front of someone. Business and marketing are all about offers. You give me this and I’ll give you that. Keep in mind that without an offer, no business transpires. Think of the many times you have seen an advertisement or marketing message and couldn’t figure out what was being offered. Don’t make this critical mistake. State exactly what you will be offering in your marketing plan.

OK, “Where is your ideal future client or customer?” Not just anyone, but who is the ideal lead to generate for your products, services or ideas. Where can you find enough of your ideal future clients to be profitable? When you do find them, how much do you know about their hopes, aspirations, desires, fears, problems, etc? Take off your shoes and walk in your future clients shoes for a week and see, hear and feel what they see, hear and feel. Then and only then, will you know their real problems.

I’m sure you’ve decided on which, if any, of the many of the different “marketing media options you’ll want to test.” Options like direct response mailing campaigns, yellow page ads or email marketing. How about tele-marketing, newspaper display ads or Webinars? Networking, Social media marketing or pay-per-click marketing? We could go on and on and on, but you get the idea. Where are you going to spend your marketing budget

Finally, as long as you are going after new clients, “How are you capturing their personal information?” I don’t mean their shoe size, waist size or height (but you may need them depending on what you are selling). Are you asking for their name, email address and snail mail address? If not, how will you communicate with them in the future?

Now grab a piece of paper and start answering these questions.Doing so will focus your marketing plan and anyone reading it will know exactly the what, where, when, who and how you are planning to market your business.

OK, I admit it; there are more than 7 questions to answer. You should have seen the ones I edited out. I’ve saved them for another article in the near future, so keep checking back.